March 30, 2023
NPCI has recommended interchange fee on UPI for transactions over Rs 2,000 made through Prepaid Payment Instruments.
A PPI payment via UPI means a transaction done via a wallet, like PhonePe Wallet through a UPI QR code
UPI transactions made via wallets will attract an interchange fee of 1.1 per cent for merchant payments from April 1, 2023.
NPCI clarified, the fee of 1.1 per cent will not be charged on UPI payments but only on payments of Rs 2,000 or higher.
The fee will be levied on merchant side. This means merchants may or may not choose to pass on the extra fee to consumers.
Regular UPI transactions, the ones that are made directly from bank account to bank account will remain free.
There are a couple of PPIs in India, including Paytm, PhonePe, and Google Pay.
The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers.
Thanks for reading!
Read more trending stories on Quickbytes